The price of Brent crude oil in 2017 may reach $70 per barrel due to the growth of consumption in China, according to analysts at Bank of America Merrill Lynch.
“Oil demand in China in the coming years will continue to grow; this is consistent with our expectations that the price of Brent crude oil in 2017 to reach $70 per barrel” — quoted RNSглобальный energy review Bank.
According to estimates by Bank of America, the average price of oil by the end of 2017 will be $61 per barrel in 2018 — $70 per barrel.
Experts also expect the growth in natural gas consumption in China. At the same time the country’s demand for coal will decrease, which, according to analysts at Bank of America, will lead to a fall in the price of energy in 2018 to $48 per ton.
Last week the Organization of countries-exporters of oil (OPEC) released a report which expects growth in world oil demand in 2017 by 1.12 million barrels a day this year to 95.3 million barrels a day. The cartel expects that the excess supply of oil will leave the market next year thanks to reduce production outside OPEC.
A day later, the International energy Agency (IEA) said it expects growth in oil demand in 2017 to 97.4 million barrels per day. In addition, the IEA has raised its forecast for oil demand in 2016 to 96,1 million barrels per day. The Agency notes that excess stocks of oil and oil products in storage still faces falling oil prices.
